is a crime!

County of Riverside Department of Public Social Services C.A.R.E. Program Curtailing Abuse Related to the Elderly 800-476-7506

This publication was developed by the Riverside County C.A.R.E. Program, and made possible through funding from the Older Americans Act Title VII—Elder Abuse Prevention Fund.

RIVERSIDE COUNTY OFFICE ON AGING

ADRC of RIVERSIDE

800-510-2020

NOTES Table of Contents

Regrets…I’ve Had A Few………………….. 1

The “Con” in Confidence…………………… 2

Affinity Fraud………………………………… 3

Charity Fraud………………………………... 3

Distraction Burglary…………………………. 4

“Grandma, It’s Me” Scam…………………... 5

Home Health Care Fraud……...…………… 5

Home Repair Fraud………………………… 7

Identity Theft………………………………… 8

In-Home Solicitation Contracts……………. 9

Insurance Fraud…………………………….. 11

Investment Fraud…………………………… 12

Jury Duty Scam……………………………... 13

Lotteries and Sweepstakes Scams……….. 14

Medicare Drug Benefits Scam…………….. 15

Phony Collection Agencies………………… 16

Real Estate Fraud…………………………... 17

Telemarketing Fraud……………………….. 18

Stop Junk Mail Form………………………... 20

Work-at-Home Scams…………………...…. 22

Resource and Reporting Guide…………… 23

(Rev. 5/2011)

REGRETS… I’VE HAD A FEW NOTES So…you had a bad day. You weren’t at your best. Maybe you were worrying about the balance in your retirement account and making ends meet.

Maybe you weren’t feeling well. Maybe you trusted or believed the wrong person, and you said “yes” when you should have said “no.” Maybe you became the victim of a consumer scam.

So…it happens to all of us, no matter our age. It does not define who you are – it does not define your tomorrow. It is only ONE MOMENT in time. If you said “yes” and regret it, call the C.A.R.E. Program for help. No need for embarrassment – we’ve heard every “yes” story imaginable and we understand the dynamics of slick talking con men. On page 2 you can read more about how con men work, and how to avoid becoming a victim in the future.

The C.A.R.E. Program (Curtailing Abuse Related to the Elderly) serves Riverside County older adult (65+) and dependent adult (18-64) victims of fraud by businesses or strangers. C.A.R.E. has three main goals when advocating for you:

1) Guard or regain your assets

2) Preserve your dignity and confidentiality

3) Provide support and assistance throughout the process

SILENCE IS FRAUD’S BIGGEST ALLY…

IF YOU HAVE BEEN SCAMMED CALL:

C.A.R.E. Program - 800-476-7506

Monday-Friday 8:00 a.m. to 5:00 p.m.

TO REPORT ALL OTHER TYPES OF ELDER ABUSE CALL:

Adult Protective Services - 800-491-7123 24 hrs. / 7 days

Both Programs are a Division of Riverside County Department of Public Social Services

1

RESOURCES AND REPORTING GUIDE THE “CON” IN CONFIDENCE

Public Service Law Corporation Legal services for income eligible resi- “Con artists” (or CONfidence men) are people trained and (951) 682-7968 dents of Western Riverside County. skilled in gaining your acceptance and trust. Behind their Small Claims Court Information Official Department to answer ques- friendly, engaging exterior lurks a dangerous ability to (through Riverside Superior Court) tions about Small Claims Court issues. break down your normal barriers and gain the very thing (951) 413-5353 / that is in their name: CONfidence. Con artists present www.riverside.courts.ca.gov themselves in a variety of ways and will change to fit Securities and Exchange To report fraudulent practices and whatever circumstances benefit their ability to pull off a Commission check the licenses of investment con- scam. They may dress in a business suit or construction (800) 732-0330 sultants/brokers. attire. They may look like your next door neighbor or a Social Security Administration To order a free copy of your earnings bank president. But all their efforts are concentrated on (800) 772-1213 / and benefits statement to check for one thing – gaining your CONfidence! According to Bob www.socialsecurity.gov identity theft. Stuber, author of “Safe Escape,” there are 5 simple rules that, when followed, will protect you from becoming the victim of a con artist. Rule #1: Make your trust hard to earn. Never trust a stranger. The only exceptions to Rule #1 are police officers and emergency room physicians. Rule #2: Don’t be fooled by appearances. Often we judge a book by its cover, but that’s a dangerous habit when dealing with con artists. They are not who they seem to be. Follow your instincts and watch for clues. Rule #3: Don’t be fooled by vocabulary – and don’t let your guard down just because someone speaks your native language. Con artists are actors and often follow a script. They have lots more practice learning scams than you have trying to avoid them! Rule #4: Always do your homework – check out the person you are dealing with and any claims he/she makes. When con artists realize you are going to investigate, often they will abandon the scam, or tell you the offer is for “a limited time only.” Rule #5: Stop the conversation! This should really be Rule #1, because if you follow it, you can ignore Rules 1-4. Conversation establishes the scam through the con artist’s mastery of communication. The longer you remain engaged in conversation, the more likely you are to be scammed. Stopping the con artist in mid-sentence or just hanging up the phone or closing your door is not rude or inconsiderate – it’s just plain smart!

If you would like to schedule a free educational presentation about elder abuse and fraud please call the C.A.R.E. Program at 800-476-7506. 25 2

AFFINITY FRAUD RESOURCES AND REPORTING GUIDE

Affinity scams exploit the trust and friendship that exists among members of simi- DMA Mail Preference Service To avoid unwanted mail advertise- lar groups such as religious or ethnic communities, and causes us to let our P.O. Box 643 ments, send name, address, and guards down. The word “affinity” means “a natural attraction, relationship, liking.” Carmel, NY 10512 phone number. (See form provided under “Stop Junk Mail” in Resource It brings into play feelings of similarity and connection. Though hard to accept, and Reporting Guide). trust is often used as a weapon. Regardless of how much you may trust your con- nection, don’t forget that he/she may have been fooled too. Call the C.A.R.E. Do Not Call Registry (Telemarketing) To removes names from telemarketing Program (800-476-7506) to check on the professional licenses of any “new (888) 382-1222 / www.donotcall.gov call lists. friends” – especially if they seem too good to be true! Self Defense Tips: Federal Trade Commission To report fraudulent debt collection (877) 382-4357 / www.ftc.gov practices and lottery/sweepstakes ♦ All claims and investments have some level of risk. If you are pitched claims fraud. of high profits, no risks, or guaranteed returns ~ say NO! Federal Trade Commission To report identity theft. ♦ Accept only written investments and proposals. If the advisor claims the deal (877) 438-4338 / www.ftc.gov is “moving too fast for them to reduce it to writing” ~ say NO! If you are told to FINRA (Financial Industry Regula- To check on licensing of investment keep a financial deal confidential ~ say NO! tory Authority) consultants and to report fraudulent ♦ Take the time to study all the claims and ask for help. If you are pitched a fi- (800) 289-9999 / www.finra.org investors. nancial opportunity that is “once in a lifetime” or “today only” ~ say NO! Health Insurance Counseling and Free assistance with Medicare, HMO, Advocacy Program (HICAP) and Long Term Care insurance. CHARITY FRAUD (800) 434-0222

Charities provide a variety of valuable services to our communities. Due to some Inland Counties Legal Services Free legal services for low income sen- (951) 368-2555 iors; civil law such as landlord/tenant, economic downturn more charities are asking for more money more often, using (951) 320-7500 (For Seniors) trusts, and family law. telemarketing and direct mail solicitation to raise funds for their causes. AARP (888) 245-4257 (Toll Free) research shows that Americans over the age of 65 receive more telephone and (888) 455-4257 (Housing Hotline for mail solicitations for charitable donations than any other age group. Fraudsters Landlord/Tenant Issues) find it easier to take advantage of seniors because they are more likely to be Medical Board of California Central To report complaints and receive infor- home during the day to receive the calls, and they may be more trusting and Complaint Unit mation about physicians. more polite to callers. Whether solicitations are made by phone, in person, or by (800) 633-2322 / www.med.bd.ca.gov mail many of the self defense tips below apply. Please call the C.A.R.E. Program Medicare To report Medicare Drug Plan Scams (800-476-7506) to assist with checking the validity of charitable organizations or (877) 772-3379 or to answer questions about a drug plan. filing a fraud report, or call BBB Wise Giving Alliance at 703-276-0100 – Press “3” - or go online at www.give.org National Fraud Information Center To report telemarketing and Internet www.fraud.org fraud. Self Defense Tips: Office on Aging Free information and referral on all ♦ Be wary of appeals that are high pressure or tug at your heartstrings, espe- (951) 867-3800 (800) 510-2020 types of senior services available cially pleas that involve patriotism, children, law enforcement/firefighters, or county wide. current events. Opt-Out Blocks your name from pre-approved ♦ Ask for the name of the charity and what percentage of the funds will go to (888) 567-8688 / credit lists. administrative costs. If you prefer to support charities or organizations that www.optoutprescreen.com 3 24

RESOURCES AND REPORTING GUIDE CHARITY FRAUD (Cont’d) Adult Protective Services To report suspected caregiver abuse, serve your own community, consider driving directly to your local police or fire (800) 491-7123 (24 hrs.) and other types of elder & dependent department, children’s program office, etc. so that you are certain that 100% of adult abuse including physical, finan- your donation goes directly to the charity or organization. cial, sexual, emotional, neglect and self-neglect. ♦ Do not agree to donate over the phone or at your front door. Do not agree to Bar Association (Lawyer Referral Legal referral service for Riverside give cash or provide credit card or bank account information until you have first Service for the Riverside County County. asked for written information and have taken time to review the charity and Bar Association) check out its authenticity. Some fraudulent charities use names that closely (951) 682-7520 resemble that of a reputable organization.

Better Business Bureau For complaints against or information ♦ Do not give to unfamiliar “charities” that set up outside grocery stores or de- (909) 825-7280 about businesses. partment stores. Often these “charities” do not even exist (even if they show Bureau of Automotive Repair, Will investigate auto repair problems you a paper to “prove” it) and your hard earned money goes straight into the

Dept. of Consumer Affairs and mediate on your behalf. pocket of fraudsters. (800) 952-5210 / www.dca.ca.gov CA Dept of Consumer Affairs To report phony debt collection agen- (800) 952-5210 / www.dca.ca.gov cies. DISTRACTION BURGLARIES

CA Dept of Corporations To report fraudulent practices by corpo- There is a knock at the door but you aren’t expecting any- (866) 275-2677 / www.corp.ca.gov rations. one. You open the door to find two workmen standing on CA Dept of Corporations – To report fraudulent practices and your porch. They inform you that there is a problem with SAIF Program check the licenses of investment con- your water, phone, electricity or gas. They ask to come in- (866) 275-2677 / www.corp.ca.gov sultants/brokers. side to check an appliance or inside line. While you are CA Dept. of Insurance To check on insurance and annuity guiding one workman to the requested location in your (800) 927-4357 / products, as well as the agents who sell house, yard or garage, the other offers to wait. While you are conversing with or www.insurance.ca.gov them. overseeing the first workman, the second workman is ransacking your desk, wallet, CA Dept. of Real Estate To report fraud or check the credentials and bedroom drawers for cash, jewelry, credit cards, and bank checks. It isn’t until (619) 525-4192 / www.dre.ca.gov of a real estate professional. two days later that you realize you are the victim of a distraction burglary.

C.A.R.E. Program (Division of APS) Provides hands-on advocacy for victims Self Defense Tips: (800) 476-7506 of consumer fraud by businesses. Free elder abuse education and training. ♦ Never open the door unless you recognize a visitor through the peephole. If Charities - BBB Wise Giving To check on the validity of a charity. there is no peephole, keep the security screen locked when you open the Alliance door, or speak to the visitor through the closed door. Remember, these are (703) 276-0100 / www.give.org strangers and can be either male or female! Contractors State License Board To check on the status of a contractor’s ♦ Always ask for photo ID and make a visual check of the visitor’s vehicle to be (800) 321-2752 / www.cslb.ca.gov license and file a complaint. certain it has official markings. If you still have doubts, don’t open the door! Credit Report (Free Annual Service) Provides free credit checks to prevent ♦ Keep your back door locked so an accomplice cannot enter through the back (877) 322-8228 / I.D. theft. door. www.annualcreditreport.com ♦ Don’t allow sales people or construction workers to sell goods or services at District Attorney’s Office, Riverside Legal entity for criminal prosecution for (951) 955-5400 Riverside County. your door – ignore the ring. Again, remember, these are strangers! 23 4

DISTRACTION BURGLARIES (Cont’d) WORK-AT-HOME SCAMS—TOO GOOD TO BE TRUE? ♦ Don’t let visitors know you are home alone. People of all ages find work-at-home offers appealing – but proceed with caution! ♦ Don’t leave cash, jewelry, bank checks or credit cards in likely places. Work-at-home scams abound and seldom produce the promised results. The most common scam related to work-at-home offers is the lack of cost disclosure. Many ♦ If you become a victim, don’t be embarrassed to report! It lets local police companies require that you spend your own money for “start up” costs, including know of burglary patterns and could result in an arrest of the perpetrators. materials and instruction or policy manuals. These offers are often attractive to Reporting also prevents the victimization of others. seniors who need the income but cannot commute to a job site. While some work- “GRANDMA, IT’S ME” SCAM at-home offers are legitimate, most are not, so do your homework. Work-at-home scams bilk consumers out of millions of dollars per year. If you need help deter- There has been a significant rise in what is called the “Grandma/Grandpa Scam” mining if an offer is legitimate or correcting work-at-home problems, contact the because it is easy to perpetrate and difficult to find the offenders. Typically sen- Federal Trade Commission at 877-382-4357 or go online at www.ftc.com, or call iors are contacted late at night by a desperate or scared voice saying “Grandma, the C.A.R.E. Program (800-476-7506) for assistance. it’s me.” The grandparent responds with “Jimmy, is that you?” and the caller then Protect yourself from these common work-at-home scams: pretends to be “Jimmy” who needs money for an emergency situation. Recent ♦ versions of this scam have been broken down cars or car accidents, lost wallets, Stuffing Envelopes: You send a “start up fee” but you never really stuff any need bail money, need to pay for bus or airline ticket. “Jimmy” begs for the money envelopes. You are instructed to simply send a copy of the same ad you re- to be wired immediately and insists that Grandma not contact his parents so he sponded to (in bulk email) to others and you collect the “start up fee” from won’t get in trouble. them. ♦ Self Defense Tips: Craft Assembly: You purchase the equipment and materials, assemble the crafts, and send them to the company, but your finished products will never ♦ Don’t panic “pass inspection.” Instead, you lose not only the money you spent on equip- ♦ Ask the caller to verify their identity by asking questions only your real relative ment and materials, but the salary you are owed as well. would know such as parent’s names, his age, his nick name, his pet’s name. ♦ Medical Billing: These pitches are usually made via email and offer contracts If the caller can’t answer correctly, hang up immediately. (with various modes of support) for billing services, claiming that you will earn ♦ Don’t wire money at the request of others, no matter how much pressure is as much as $8,000 per month. What they don’t tell you is that you will have to applied. find your own clients. Because the medical billing industry is extremely com- ♦ Report to law enforcement immediately. petitive, you will most likely never recover your initial investment, let alone turn a profit. HOME HEALTH CARE FRAUD

Care giving is THE issue of our age. California has 3.5 million seniors, about 30% of whom live alone. Over 50 million people will provide some type of care for relatives or friends during any given year. This creates a problem with more mobile families living away from older relatives, and more working women who also are caring for children. Elder care is needed for longer periods of time as people live longer with more serious disabilities, including dementias. The num- ber of elder financial abuse cases has grown 32%, often with care givers as the suspects. While the majority of care givers are honest, capable and compassion- ate people, some are waiting for an opportunity to take advantage of an elder who is ill or vulnerable. Beware of care givers who: 5 22

STOP JUNK MAIL FORM HOME HEALTH CARE FRAUD (Cont’d) See other side for instructions ♦ Isolate you from or speak negatively about friends, neighbors, and family ♦ Ask for cash, property or gifts ♦ Ask for help with money problems, assistance for their family members, or a vehicle ♦ Push to handle your finances and who ask about your will, trust or investments ♦ Ask you to sign a Power of Attorney or other documents, and who make deci- sions for you without your input or permission ♦ Push you to change to “their doctor” or “their attorney” ♦ Promise lifetime care in exchange for your property or assets Self Defense Tips: ♦ Don’t sign documents giving control of your finances to someone else, includ- ing your children and grandchildren, unless you have a lawyer, advocate, or other trusted person review them. ♦ Don’t give up control of your property or assets unless you decide you cannot manage them yourself – and choose a long time trusted person to assist you, not a new acquaintance. ♦ Ask friends and relatives to make consistent visits to check on your well-being. ♦ If you need to hire an outside care giver, if at all possible it’s best to do a back- ground check to make sure there is no history of alcohol/drug abuse or crimi- nal activity. ♦ Before hiring insist on receiving copies of driver license, proof of citizenship or legal work permit, social security number, and proof of car insurance. ♦ Always interview the private care giver or agency representative in person, and ask a friend or relative to be present during the interview as well. Follow your instinct! ♦ Be very specific about your needs and develop a contract in writing between you and the care giver detailing his/her duties as well as the expected, fair compensation for services provided. Keep the relationship with your care giver a professional business relationship. ♦ Don’t allow anyone to keep details of your finances or property management from you. ♦ Don’t allow yourself to be isolated from other people in your community, family, or network of friends and acquaintances. Ask for help when you need it. ♦ Never, never give a non-related care giver a Power of Attorney! ♦ Call Adult Protective Services at 800-491-7123 to report care giver abuse. 21 6

HOME REPAIR FRAUD STOP JUNK MAIL! Fraudulent activity from crooked con- If you would like to stop receiving junk mail in your mailbox, complete and tear out tractors costs consumers hundreds of the mail-in registration form below. Include a check or money order for $1.00 (no millions of dollars annually in the form of cash) payable to Direct Marketing Association. poor workmanship, abandoned projects Mail it to: that were paid in full up front, worker’s compensation fraud, and code viola- Mail Preference Service tions. Retired seniors are often targeted Direct Marketing Association because they are home during the day, P.O. Box 643 are sensitive about maintaining their homes, seem reluctant to “impolitely” close Carmel, NY 10512 the door or hang up the phone, and don’t always have the ability to check for themselves the claims that fraudulent contractors make about the severity or ------need for home repairs. The C.A.R.E. Program (800-476-7506) can help home- owners check the licenses of contractors or file a report with the Contractors Dear Direct Marketing Association: State License Board and law enforcement if fraud occurs.

Self Defense Tips: Please remove my name from your marketing lists. Thank you for ♦ Plan ahead. Know which services you want or need before contacting a con- tractor. Do not believe contractors or repairmen who show up at your door your attention to this matter. claiming that they “noticed from the street that you need repairs,” who offer “discounts only for today” or a “free inspection,” or who claim that you will be First Name: ______in “dire peril if you don’t accept repairs today.” ♦ Don’t be bullied into signing a contract before checking licenses and getting Middle Name: ______at least three detailed estimates from competing contractors. Anyone per- Last Name: ______forming home improvement work totaling more than $500 (including both ma- terials and labor) must be licensed. Contact the Contractors State License Address: ______Board and the Better Business Bureau to check the license of the contractor and access any complaint records on that license. You can also contact the Apartment #: ______C.A.R.E. Program for assistance. ♦ Contact your local building inspection department to check for permit and in- City: ______spection requirements. State: ______♦ Call your insurance company to find out if you are covered for any injury or damage that might occur on your property and be sure your contractor has Zip Code: ______the required workers compensation insurance. ♦ Insist on a complete written contract which reflects exactly the scope of the work, the quality of materials that will be used, start and completion dates, the ______names of any subcontractors, the total price of the job, and the schedule of Signature payments. Don’t hesitate to ask a trusted friend or relative to review it with you before signing. 7 20

TELEMARKETING FRAUD (Cont’d) HOME REPAIR FRAUD (Cont’d) ♦ Don’t purchase by phone from unfamiliar companies. Legitimate businesses ♦ Never make a down payment on a job of more than 10% or $1,000.00 will understand when you want more information about their offer or their (whichever is less) before the work is completed. Never pay cash! If you do, company. you cannot prove you ever paid for the work. Never allow a contractor to drive ♦ Always ask for, and wait until you receive, written material about any offer or you to the bank to withdraw funds. charity. If you get brochures about investments, ask your financial advisor to ♦ Understand your three day cancellation rights and don’t sign them away on an review them. emergency waiver. ♦ Always take your time making a decision. Legitimate companies won’t pres- ♦ To file a complaint with Contractors State License Board call 800-321-2752 sure you to decide quickly. It’s not rude to wait and think about an offer. Re- or go online at www.cslb.ca.gov member, if you’ve won a prize but have to pay for it too, you haven’t “won” anything. IDENTITY THEFT ♦ Don’t give your credit card number, checking account number, or other per- sonal information to a telemarketer unless you are familiar with the company, Identity theft is the appropriation of personal and the information is necessary in order to make a purchase that you initi- information without your knowledge or consent, ated. in order to commit fraud or theft. ID theft loss to consumers is about $5 billion per year, while ♦ Call the National Fraud Information Center at 800-876-7060 to ask about losses to financial institutions nationally are $47 calls you may have received or to report possible instances of telemarketing billion per year. California is ranked third in the fraud. You may also call the Federal Trade Commission’s consumer re- nation for identity theft related crimes. Those sponse center with questions or complaints at 202-382-4357. The most susceptible own their own homes, are not C.A.R.E. Program (800-476-7506) can assist with these calls and support very active with creditors, are less likely to notice billing changes, and allow others you through this process. to do their banking. Since it can be both expensive and time consuming to restore ♦ Always check out unfamiliar companies with your local Consumer Protection your identity and good name, the best defense against identity theft is PREVEN- Agency, Better Business Bureau, State Attorney General, or The National TION. If you need more prevention information or if you become a victim of identity Fraud Information Center (see contact information for these agencies in the theft, please contact the C.A.R.E. Program (800-476-7506) for assistance. Resource and Reporting Guide at the back of this booklet). Self Defense Tips: ♦ Do not reveal your social security number or bank account information to any- one. ♦ Keep your financial records filed away and locked (especially your pin num- bers) if you have care givers or other service providers in your home fre- quently. ♦ Check your monthly statements as soon as they arrive; if there is loss on your account contact the credit card company within 30 days AND contact the credit reporting bureaus to ask for a “fraud alert.” ♦ Request that unsolicited credit card offers be stopped by calling Opt-Out at 888-567-8688 or go online at www.optoutprescreen.com. Request that your credit card companies stop sending the “instant checks” that are often attached to credit solicitation mail. These are “instant cash” for thieves! 19 8

IDENTITY THEFT (Cont’d) REAL ESTATE—PROTECT YOUR INVESTMENT ♦ Guard your personal information by carrying only the cards you will need to- (Cont’d) day. Never carry your social security card with you. If you believe you are a victim of ID theft, contact Social Security at 800-772-1213 to order a copy of charge fees and cannot guarantee that you won’t lose your property in the your Social Security Earnings and Benefit Statement. end. ♦ Carry outgoing mail to the post office or collection box; the red flag on your ♦ Red flags of fraud may include the receipt of a recorded document with some- mailbox is an invitation to thieves. one else’s name on it at your address, the receipt of a payment book that re- quires you to send payments to the loan agent you have been working with, or ♦ Make front/back copies of all your credit and debit cards and write contact your failure to receive property tax bills at your address. You may be working numbers down in case your cards get stolen (place this information in a safe with a reputable Real Estate office, Title Company and Escrow but there may or safe deposit box). be employees working within the reputable office who are crooks. ♦ Report ID theft to law enforcement. Penal Code 530.6 requires law enforce- ♦ You can report fraud or check the credentials of a real estate professional by ment agencies to give, at no charge, a copy of the report to the victim for use contacting the Department of Real Estate at 619-525-4192 or go online at in restoring their identity. www.dre.ca.gov ♦ You may request a FREE credit report from each of the three nationwide con- sumer credit reporting companies: Equifax, Experian, and TransUnion. This is the fastest way to uncover theft. Call 877-322-8228 or go to TELEMARKETING FRAUD www.annualcreditreport.com. You have the option to request all three re- Telemarketing fraud is a term that refers to any ports at once, or to order one report every 4 months to better monitor your type of scheme or fraud that is perpetrated over reports throughout the year. the telephone. Usually the telemarketer tries to persuade people to purchase goods or services, IN-HOME SOLICITATION CONTRACTS invest money, or donate funds to charitable causes. Fraudulent telemarketers use false or Many of us believe that when we sign a contract it is a “done deal” – that we have misleading statements with the intent of obtaining no right to change our minds! In many cases that is true, but thanks to the Home payment before the offer can be inspected fur- Solicitation Sales Act, it is not true when it comes to any consumer transaction ther. Fraudulent telemarketers obtain “leads” from that takes place in your own home – everything from vacuum cleaner sales to each other and from “lead brokers” at a high cost. home repair/remodel. Consumer transactions involving $25.00 or more can be These leads are lists of names of people who have been previously defrauded and cancelled by the buyer within three business days after the buyer signs the con- are then considered easy marks for future scams. You can keep your name off of tract, IF the transaction took place anywhere other than the seller’s place of busi- these lists by avoiding “free” offers that require you to give strangers your address ness. That would include the buyer’s home, office, a restaurant, or other public and phone number in order to win. Those “win a car” or “win a vacation” offers at place. The cancellation provisions apply whether or not the buyer initiated con- the mall never seem to be awarded, but are often a way to generate lead lists. tact with the seller, and whether or not the payment was financed. Cancellation is as simple as delivering or mailing written notice to the seller that you are cancel- Self Defense Tips: ing the contract or offer (phone calls are not permitted). ♦ Take advantage of blocking your name from pre-approved credit lists by using Contracts and offers can be canceled past the three-day period (even if the work “OPT-OUT” at 888-567-8688 or go online at www.optoutprescreen.com. has been completed or the product delivered) IF the contractor or salesman ♦ Get rid of telemarketers by placing your name on the “Do Not Call” Registry DOES NOT meet all of the following requirements: at 1-888-382-1222 (www.donotcall.gov). Be aware that fraudulent telemar- keters will not always comply with the registry rules. 9 18

REAL ESTATE—PROTECT YOUR INVESTMENT IN-HOME SOLICITATION CONTRACTS (Cont’d) The subject of Real Estate Fraud is too complicated to tackle on one page and 1) The contract or offer must be in writing and must be in the same language as not all problems are caused by outright fraud. There are unethical business prac- the oral sales pitch tices and just plain “bad advice” that can do just as much harm as actual fraud. 2) The contract or offer must be signed and dated by the buyer, and must state Your equity may be your biggest asset and your nest egg for your last years, so the name and address of the contractor to which the notice of cancellation is do not put something that precious into the hands of a stranger. Savvy consumers being sent have been taken advantage of, so if it can happen to them, it can happen to you. 3) The contract or offer must contain a clear notice of the buyer’s right to cancel, If you discover something amiss in a Real Estate transaction seek help right away which must be located near the space for the buyer’s signature – don’t sign until you do! You can contact the C.A.R.E. Program (800-476-7506) 4) The seller must give the buyer a copy of the contract or offer, with detachable for advice or assistance, or to check the credentials of a real estate professional cancellation forms, as well as tell the buyer orally of their right to cancel at time or attorney. of signing Self Defense Tips: ♦ Do not enter into any Real Estate agreement because of a phone call. Hang up and do your own research. If you don’t quite understand what you are do- ing, you have not researched it enough to take a “leap of faith.” Don’t let em- barrassment prevent you from talking to professionals about your needs and your plans before you sign something. ♦ If you have questions about your home equity or loan, talk to someone local. Your hometown banker, real estate professional, or your attorney will be able to advise you. A local business has a vested interest in you and a stronger desire to preserve their own reputation in their dealings with you. You will also have the benefit of meeting face to face, as well as home delivery or local pick up of paperwork to facilitate answers to questions before you sign. ♦ Don’t agree to become Joint Tenants with a family member, caregiver or friend as a quick fix for Estate Planning because situations can change. Be- coming Joint Tenants gives your family member or other person an equal say in the disposition of property. Making someone a joint tenant will cause you to lose your power to decide what you want to do with your property and when. The Home Solicitation Sales Act, Truth in Lending Act, and the Business and Pro- ♦ A Quit Claim Deed is often used in financial elder abuse so don’t Quit Claim fessions Code Section 7163 were instituted to protect consumers from high pres- your property to family or others unless you get your own legal advice. A quit sure sales. Because there are exceptions to these laws under certain circum- claim in not reversible just because you change your mind. Never agree to stances, please contact the C.A.R.E. Program (800-476-7506) for assistance with quit claim your property in exchange for lifetime care. Many seniors have your specific issue. To avoid having to go through a cancellation process, be cer- been evicted from their own homes because they have quit claimed their tain to carefully read the contract (especially the fine print) before signing, and con- property to the wrong person. sider taking your own cooling off period (at least 24 hours) before signing to afford ♦ Foreclosure problems can sometimes be worked out but you should start with more clarity to your decision. your Lender. Don’t get involved with a Credit Restoration business until you have tried to help yourself. Companies who offer restoration assistance may

17 10

INSURANCE FRAUD PHONY COLLECTION AGENCIES Insurance is a complicated and challenging subject for anyone regardless of age, Phony bill collectors are calling consumers demanding immediate payment on financial status, education or experience. Many people are using life and annuity non-existent debts, threatening dire consequences if payments aren’t made. Most products as part of their financial planning tool kit, but few understand the ins and often it is required that the money be wired, and if there is resistance often a outs of these contracts or what they are getting for their money. It is important to “discount” payment is offered. These aggressive, persistent calls at all hours are a learn to protect yourself from predatory agents and know your rights under the scam, designed to scare people into paying money they don’t owe. Even if you law. Please contact the C.A.R.E. Program (800-476-7506) for assistance in de- have an existing debt, legitimate creditors do not conduct business this way. The termining if an insurance salesman is licensed to sell the products he/she is offer- C.A.R.E. Program (800-476-7506) will help you determine the validity of the col- ing. lector’s demands and your rights under the law. Self Defense Tips: Self Defense Tips: ♦ Never give out your personal identifying information, including your address ♦ Don’t panic - understand that debt collectors have no legal authority over you, and phone number, at a sales presentation. Instead, take their contact infor- except through the court, and are governed by the Fair Debt Collection Prac- mation and call them if you are interested in their product. tices Act ♦ Do not assume that because a sales presentation is being held at a senior ♦ Demand to receive the debt information in writing within 5 days of a collection center or government building that those entities recommend or endorse the phone call. If the collection agency refuses to supply you with written verifica- salespersons or their products, or that they have confirmed licensing. Often tion of the debt and the date the debt was incurred, it has broken the law or it agents are simply renting the space. is a scam. ♦ Be wary of agents who claim a special “senior specialist or advisor” designa- ♦ Be aware that in California there are statutes of limitations on old debts. tion. ♦ Understand that you have the right to provide a written request for no further ♦ Be wary of agents who advise you not to speak to anyone from your current contact from a collector and they must comply. Also collection callers can only insurer about a proposed policy change, or who speaks negatively about your contact you between 8:00 a.m. and 9:00 p.m. current insurer. ♦ Don’t wire money at someone else’s request – ever! ♦ Be aware that, while they enjoy current popularity, Annuities are not always ♦ Don’t give anyone your employment information, account numbers, social se- appropriate financial instruments for older customers, and often have high curity number, or permission to debit your bank accounts, no matter how early release fees and high undisclosed commissions for the agent. Do your threatening the phone calls become. An illegitimate collector may steal your homework before purchasing an Annuity! identity. ♦ Do not sign any paperwork that you do not fully understand, and do not sign ♦ Don’t believe threats that you will go to jail – people go to jail for fraud, not the same day it is presented to you. Insist on your own cooling off period (24- debt! 48 hours) so that you can do your own research or seek advice on issues that ♦ Don’t believe threats that you will be sued – let the C.A.R.E. Program help you you may not quite understand. Never sign blank forms. determine the validity of the collector’s demands. ♦ Insurance agents are required to print their license numbers on all business ♦ You can report illegal debt collection practices to the Federal Trade Commis- cards, quotations and advertisements. sion at 877-382-4357 – www.ftc.gov, or the CA Dept. of Consumer Affairs ♦ Contact the California Department of Insurance at 800-927-4357 or go at 800-952-5210 – www.dca.ca.gov. online at www.insurance.ca.gov if you have questions about products or if you want to check the license of an agent.

11 16

LOTTERIES AND SWEEPSTAKES FRAUD (Cont’d) INVESTMENT FRAUD ♦ According to the Federal Trade Commission, if you play a foreign lottery — The 50 plus population is the fastest growing segment worldwide with over $8.5 through the mail or over the telephone — you’re violating federal law and are trillion investable assets. Because seniors are such a fast growing segment of in- subject to a $1,000 fine and up to two years in prison. Even if someone in the vestors, financial services firms are concentrating their marketing efforts toward United States won a foreign lottery, they wouldn’t be able to claim it. senior investors and those who are nearing retirement age. Investment regulatory ♦ There are no secret systems for winning lotteries. Your chances of winning agencies are growing more concerned about fraudulent practices in this industry more than the cost of your tickets are slim to none. and are encouraging investors to beware of “free lunch” seminars, misleading “senior specialist” designations, and abusive sales practices by unlicensed or inex- ♦ If you purchase one foreign lottery ticket, expect many more bogus offers for perienced financial advisors. The C.A.R.E. Program (800-476-7506) will assist lottery or sweepstakes “opportunities.” Your name will be placed on “sucker you in determining the red flags of abuse, and whether a professional is appropri- lists” that fraudulent telemarketers buy and sell. ately licensed for the products being offered. ♦ Keep your credit card and bank account numbers to yourself. Scam artists Self Defense Tips: often ask for them during an unsolicited sales pitch. ♦ Do not attend free meal seminars - people have lost their entire savings and have suffered dire tax consequences to receive a free meal! Often the sales- MEDICARE DRUG BENEFIT SCAMS people promoting free meal seminars are not licensed or experienced in help- ing seniors structure their retirement portfolios in a manner that reduces taxes, You have probably seen at least one news minimizes risk, and avoids state probate laws. They do not always match up article related to various prescription drug your investments with your age, need for access to your money, and your tol- plan telemarketing schemes. As usual, the erance for risk. While they claim “nothing will be sold at this workshop” often scammers have been busy figuring out new you are contacted at a later date with sales pitches - especially if you agreed ways to steal your money! Often the trick to “sign in” with your contact information when you arrived. involves a telemarketing call asking seniors ♦ for personal bank account information and Do not agree to meet with strangers whose services you have not solicited. sometimes offering a new Medicare card Ask friends and relatives to refer you to their consultants who are licensed and for a fee. When the telemarketer receives have a proven track record of sound financial advice, especially if you sud- the requested account information, an denly find yourself in charge of your finances due to the illness or death of a amount (usually just under $400) is withdrawn electronically to pay for the illegiti- spouse. Go to their office to discuss business so that you are in control of how mate Medicare card or prescription drug plan. The callers may use fictitious or long the appointment lasts. Do not take your checkbook to the first appoint- generic sounding business names such as National Medical Office, Medicare Na- ment! tional Office, and National Medicare. ♦ Ask for a business card with the consultant’s full name, license number, per- manent street address (not a P.O. Box) and office phone number. Do not do Self Defense Tips: business with an advisor who operates from a message service, cell phone or ♦ Hang up if you receive a call requesting bank account information or payment pager. Drive by the address and call the office number to verify that the office regarding your Medicare drug benefits. Legitimate Medicare drug plans will does exist. not ask for payment over the phone or the Internet – it is against Medicare’s ♦ Check the credentials of the investment advisor by contacting FINRA rules. They must send a bill to you for the monthly premium. (Financial Industry Regulatory Authority), the Securities and Exchange Com- ♦ If you become a victim of this type of scam, or if you have questions about a mission, or the Department of Corporations. Check credentials with the De- drug plan, please call Medicare directly toll free at 1-877-772-3379. partment of Insurance if the investments contain insurance products such as Annuities. “Senior Specialist” designations for financial advisors can be mis- 15 12

INVESTMENT FRAUD (Cont’d) JURY DUTY SCAM (Cont’d) leading and can imply that the bearer has a special expertise in addressing Self Defense Tips: the financial needs of seniors. It can be difficult to determine whether the cre- ♦ Hang up the phone! It is uncommon for court officials to contact you by phone dential is meaningful or whether it is simply a marketing device; therefore, do about jury service. not depend primarily on these designations when choosing an advisor. ♦ Court officials would not ask for your personal information. If you are unsure ♦ Watch out for salespeople who use fear tactics (i.e. fear about outliving your about jury service compliance, offer to drive to the courthouse and speak with money, high cost long term care, or a health crisis). Fear can negatively affect the officer in person. your normally good judgment. ♦ Never give your personal information to a caller who is unknown to you – no ♦ Check out all rates of return claims by asking for the period of time in which matter how critical the call seems. they were achieved. If advertisements don’t include this information, look for ♦ If you receive a call like this, report it to the court and to the police. another advisor. If you are interested in an investment, request a prospectus by mail and ask a trusted person with investing experience to review it with you. LOTTERIES AND SWEEPSTAKES FRAUD ♦ If an investment counselor stalls when you want to retrieve your principal or American consumers, especially senior citizens, are being victimized daily by lot- cash out profits, consider this a big red flag! Since some investments have tery scams and fraudulent sweepstakes offers mostly operating out of foreign defined periods during which you cannot cash out, be certain to ask about countries, such as the UK, Netherlands, Canada, Jamaica, and Spain. The emails these periods before you invest so that you are certain when your money will and letters sent by these fraudsters contain detailed information designed to trick be available to you. the victim into believing in their authenticity. If you have been tempted to partici- ♦ The minute you suspect that you have been scammed, do not hesitate to re- pate in these offers, be aware that it is illegal to sell or purchase foreign lottery tick- port the abuse. Criminals count on embarrassment or fear delaying reports. ets through the U.S. mail. There is no evidence that lottery tickets have ever really The longer you wait to report, the more money is being spent and the more been purchased on behalf of American citizens, though the scammers will repeat- people are being victimized. Contact the Securities and Exchange Com- edly debit credit cards and checking accounts while claiming to purchase tickets. mission, the Dept. of Corporation’s SAIF Program, or FINRA to report If you believe that you have received a letter or email that may be a lottery or fraud or to check licenses (see contact information for these agencies in the sweepstake scam, contact the C.A.R.E. Program (800-476-7506) or the Federal Resource and Reporting Guide at the back of this booklet). Trade Commission at 877-382-4357 – www.ftc.gov Self Defense Tips: JURY DUTY SCAM ♦ It is illegal to ask consumers for money up front for prizes or sweepstakes. Someone calls you identifying himself as an officer of the courts. He informs you Telemarketers offer bogus prizes such as jewelry, vehicles, or cash to victims that you have failed to report for jury duty – an offense that can result in your ar- who agree to pay “taxes,” “fees,” or “shipping or handling charges.” Reputable rest. You tell him that you did not receive a jury summons. In order to confirm that sweepstakes companies will always notify winners by mail or courier, and you are telling the truth, or to assist you in paying a small “fine” for not reporting never require up front money. for jury duty, the caller requests your birth date, social security number, and ♦ In some versions of these scams, they will even send you a check that looks sometimes a credit card or bank account number so that they can debit your ac- real, asking you to cash it and THEN send them the “fees” or “taxes.” It may count or steal your identity. Scammers operate with a fear factor. Facing a possi- take weeks to learn that the check is fraudulent – but by then you’ve already ble arrest, some people will part with their personal information before they have sent them the fees! The bank will then make you cover the amount of the had a chance to think it through. If you need assistance call the C.A.R.E. Pro- “check” you deposited in your account. gram (800-476-7506).

13 14